Banking · IRAC Norms and NPA Classification

The Income Recognition and Asset Classification (IRAC) norms are objective and based on record of recovery rather than subjective perception. Consider the following statements regarding IRAC norms: Statement I: For a Cash Credit (CC) account, the account is treated as 'Out of Order' if there are no credits continuously for 90 days as on the date of Balance Sheet. Statement II: In the case of agricultural loans for 'Long Duration Crops', the account becomes an NPA if the installment remains overdue for two crop seasons. Statement III: An NPA account can be upgraded to 'Standard' only if the entire arrears of interest and principal are paid by the borrower. Statement IV: The 'Concept of Verticality' implies that if one loan of a borrower is an NPA, all other loans of the same borrower in the same bank must also be classified as NPA. Statement V: A loan guaranteed by the Central Government is exempt from NPA classification for income recognition purpose even if interest is overdue for more than 90 days, though provisioning is required if overdue. Which of the following combinations is correct?